The Role of Insurance in Climate Change Adaptation : Current Practices and Future Challenges

In Europe, the impact of climate change is increasingly evident. Since the 1980s, the continent of Europe has been warming around twice as fast as the global average, while heatwaves, extreme rainfall, floods, droughts and wildfires are placing growing pressure on societies, ecosystems and economic activity.

As natural catastrophes become more frequent and severe, they pose substantial economic and social challenges across Europe. At the same time, insurance coverage for such events remains insufficient in many countries, leaving households, businesses and public authorities exposed to financial losses and making recovery after disasters more challenging.

Organized by the Bank of Greece in the context of the LIFE-IP AdaptInGR project, this workshop will focus on the role of the insurance sector in supporting climate change adaptation and strengthening resilience. Speakers from regulatory authorities, the public and
private sectors will address issues relating to the insurance protection gap in Europe and in Greece, the challenges and opportunities for the insurance market related to climate change, and the role of the State in disaster compensation and risk management. The workshop will
also present good practices, case studies and relevant insurance products and schemes in Greece and abroad, with the aim of supporting the dialogue on how insurance can contribute more effectively to prevention, adaptation and recovery from climate change.

Thematic areas

• Insurance protection gap in Europe and in Greece and the role of insurance in managing climate risks.
• The role of the State in compensation for natural disasters. Current legal framework in Greece (ex. Greek Law 5116/2024).
•  Analysis of the Greek insurance market for climate risks (products, coverage/insured population, challenges). Life AdaptInGR indicators for monitoring and evaluating adaptation progress.
• European case studies: tools, schemes/product design.